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Agriculture and its Impact on Financial Institutions
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15 pages.
Because of the uncertainty in the agricultural markets there is a
definite impact on the lending institutions that service them.
There are so many variables in the farming industry that there is
no guarantee from year to year that agribusinesses will be able
to keep up with loan payments if they have one or more years of
losses in a row. There is currently widespread controversy among
the agribusinesses and lending institutions on Capitol Hill as to
how best to cope with the problem. One such solution would be to
privatize lenders dealing with farm loans, and other solutions
run the gamut from asking farm lenders to diversify their
businesses to suggesting more emergency funding from the
government. It is the purpose of this paper to prove that while
farm lending can be a risky business it would serve no good
purpose and would be unfair to other businesses for government
emergency funding to be increased; lending institutions will need
to work out ways to deal with the agribusiness risk.
Bibliography lists 36 sources.
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Pages:
15
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Filename:D0_JGAagfin.wps |
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Paper Title:
Agriculture and its Impact on Financial Institutions
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